Greece's lenders agreed to provide the third bailout programme to Greece. The bailout programme should total about €90 billion. European Union finance ministers agreed to provide a €7 billion bridge loan to Greece until the third Greek bailout programme will be set up, and the amount of emergency funding (ELA) to Greek banks was increased by €900 million for one week
The Greek parliament has approved reforms demanded by Greece's creditors in return for the third bailout programme on Wednesday.
It looks like that the Greek drama is over but the main area of dispute remains: debt restructuring. Germany is against any debt relief but the International Monetary Fund insists on debt restructuring.
IMF Managing Director Christine Lagarde said in an interview with French radio station Europe1 on Friday that the IMF will participate in the third Greek bailout programme it includes debt restructuring and government reforms. €16 billion of the third bailout programme should come from the IMF.
The possible first interest rate hike by the Fed was also in focus this week. The Fed Chair Janet Yellen said that the Fed could raise its interest rate this year. But opinions of Fed officials are divided.
U.S. inflation remains low. Inflation in June rose slightly. I think that inflation should rise significantly before the Fed start raising its interest rate.
Markets are expected to be volatile. Investors will focus on the situation in Greece and the Fed's monetary policy. It is likely that the currency pair EURUSD will test the level $1.0950 or $1.1000 if news regarding Greece will be positive. In case of negative news regarding Greece and positive U.S. economic data, the currency pair EURUSD may test the level $1.0800 or $1.0700.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.